Sunday, September 26, 2010

Transportation and Logistics Software - What Are Its Advantages?



If you are a small to mid size company that tries to ship your goods without the aid of transportation logistics, you'll likely end paying significantly more for shipping than you would if your hired a third party logistics (3PL) provider or implemented online transportation and logistics software. Without the aid of freight logistics, the cost of the shipping process can prohibitive for small to mid size companies for two main reasons: they either pay full truckload FTL shipping (full truck load) rates to ship partial loads or, realizing the economic disadvantage of FTL shipping for partial loads, they use parcel shipping, which is also a disadvantage when shipping multiple parcels on a regular basis. In response to these situations, 3PL and transportation and logistics software can revolutionize a company's sipping costs by providing them with options such as LTL shipping (less than truckload), integrated transportation methods based on competitive pricing and shorter shipping routes based on route analytic.

But while 3PL and logistics software function in the same capacity, the latter has two basic advantages over the former, beginning with price differential.

Price Differential

Although 3PL and logistics software companies serve the same purpose, they are principally different in their corporate make up. Third party logistics providers are freight logistics experts that act as middlemen between manufacturers and shipping companies, while logistics-software providers are freight logistics experts that specialize in creating freight logistics software, which they offer as an online software application for an affordable monthly fee. In other words, when you opt for 3PL, you end up paying more because you pay for an expert to manage your account, whereas logistics software lets you manage your own freight logistics through an easy to use interface. Essentially, 3PL providers make their money by charging you for a logistics service that you could easily perform on your own with the aid of logistics software. It's as simple as that.

Level of Control

When you outsource a service that isn't one of your company's core competencies, you're naturally at the mercy of the company that you outsource to. This is not to say to that 3PL providers are out to profit on their clients' lack of logistics expertise in an ulterior way. But it does mean that 3PL providers are always looking for LTL shipping rates and other shipping options that offer the greatest price differential between what the options actually cost and what they charge their clients to secure those options. In some cases, the greatest price differential might result from shipping your goods with a company that doesn't have the best reputation; a situation that you could easily avoid if you opt for logistics software. In addition to allowing more control over what companies you ship with, logistics software also allows each of your company departments to participate in the shipping decision process by accessing the software online, which can prove extremely valuable from an accounting and management perspective.

www.made-from-india.com offers solutions that help companies to improve bottom-line operational efficiency and meet new performance objectives. The exclusive database covers information about Logistic & Transport services in India, Logistic & Transportation Products in India, exporters of Logistic & Transportation Accessories, Logistic & Transportation products importer, Logistic & Transportation supplier, Logistic & Transportation manufacturers, & Wholesalers, logistics services in India, and customized global transportation.

Friday, September 24, 2010

Transportation and Logistics Software - What Are Its Advantages?



Logistics & Transportation Industry is under pressure to meet greater customer expectations, improving return on assets, minimizing costs, optimizing capacity and promoting operational excellence. The industry is at the forefront to adopt new technologies to facilitate time specific delivery and electronic tracking. In this rapidly changing environment, it is imperative to ensure that investments help to rationalize costs and provide the intelligence to optimize inter-modal flows.

If you are a small to midsize company that tries to ship your goods without the aid of transportation logistics, you'll likely end paying significantly more for shipping than you would if your hired a third party logistics (3PL) provider or implemented online transportation and logistics software. Without the aid of freight logistics, the cost of the shipping process can prohibitive for small to midsize companies for two main reasons: they either pay full truckload FTL shipping (full truck load) rates to ship partial loads or, realizing the economic disadvantage of FTL shipping for partial loads, they use parcel shipping, which is also a disadvantage when shipping multiple parcels on a regular basis. In response to these situations, 3PL and transportation and logistics software can revolutionize a company's sipping costs by providing them with options such as LTL shipping (less than truckload), integrated transportation methods based on competitive pricing and shorter shipping routes based on route analytics.

But while 3PL and logistics software function in the same capacity, the latter has two basic advantages over the former, beginning with price differential.

Price Differential

Although 3PL and logistics software companies serve the same purpose, they are principally different in their corporate make up. Third party logistics providers are freight logistics experts that act as middlemen between manufacturers and shipping companies, while logistics-software providers are freight logistics experts that specialize in creating freight logistics software, which they offer as an online software application for an affordable monthly fee. In other words, when you opt for 3PL, you end up paying more because you pay for an expert to manage your account, whereas logistics software lets you manage your own freight logistics through an easy to use interface. Essentially, 3PL providers make their money by charging you for a logistics service that you could easily perform on your own with the aid of logistics software. It's as simple as that.

Level of Control

When you outsource a service that isn't one of your company's core competencies, you're naturally at the mercy of the company that you outsource to. This is not to say to that 3PL providers are out to profit on their clients' lack of logistics expertise in an ulterior way. But it does mean that 3PL providers are always looking for LTL shipping rates and other shipping options that offer the greatest price differential between what the options actually cost and what they charge their clients to secure those options. In some cases, the greatest price differential might result from shipping your goods with a company that doesn't have the best reputation; a situation that you could easily avoid if you opt for logistics software. In addition to allowing more control over what companies you ship with, logistics software also allows each of your company departments to participate in the shipping decision process by accessing the software online, which can prove extremely valuable from an accounting and management perspective.

Wednesday, September 8, 2010

Transportation & Logistics - Helpful Hints For Customers to Get the Most From Their Sales Reps



My goal is for this article to serve a dual purpose: 1) Bridge the gap between customer-sales representative communications in the workplace. 2) Help Customers get the most out of their relationship with their Sales person.

We all know how many books are written nowadays on Sales success. There are so many, the titles start to blur. "How to Add Value to Your Customer's Day", "Sales 101" and my all time favorite "The Richest Man In Babylon." Our society is geared towards capitalism, and since there are so many books that can help a salesperson to become better at their trade and increase their income, then all one has to do is head to the local bookstore and purchase then apply- if only it was that easy. It's a fact that if a salesperson wants to take the initiative and invest in their success, there are a myriad of resources available to them. But I decided to take a totally different approach to writing this article for a few different reasons.

We as salespeople are trained that "the customer's are always right", and to be "subservient" to our customer's needs. Phrases such as, "What can I do to earn your business?" "Here's my cell phone, home phone, and even my wife's phone if you need to get a hold of me." I make light of this but Salespeople, you know it's true. We tend to overdo it when it comes to competing to capture business with the pleasantries and the "butt-kissing."

During this past Christmas I had received Xmas cards from a few of my clients. They were nothing fancy, but you could feel how heart felt they were, and the thought behind them was apparent. I thought to myself, I would do anything for these customers because they truly appreciate the work that I put in. I know that it's our job to provide the ultimate service to our customers, and to be proactive, rather than reactive to their needs, but for a customer to acknowledge our effort means a lot. What I have found, from over 20 years of experience in the Transportation industry, is that customer's who show their appreciation and are willing to work with their Account Exec's tend to have a better business relationship with the vendor. My hope is that this article would be picked up by customers, the people that we sell to, and have this information applied to the way they do business. I wouldn't want to bet on this happening anytime soon, because for the most part, customers are set in their ways. They have been spoiled by us, the sales reps, because for every 1 customer that accepts this information, there will be 100's who laugh at it. I have personally been in situations where in a Carrier had the opportunity to "work with" a customer on resolving an issue, but decided not to- based solely on the fact that they didn't like the customers attitude. So now the typical reaction to this from a customer's point of view is "So what, I'll just go to another vendor." This may be true, but after a while the number of quality companies starts dwindling, and the customer is at a stalemate. Below I have listed 7 helpful hints customers can use to try to build a better rapport with their sales rep:

· Testimonials- Sales Reps can use this for their business building. Ask your sales rep to prepare one for you in advance so that you don't have to spend time thinking of what to say.

· Referrals- Just like testimonials, this could be very beneficial to the sales rep, and help them build their book of business. I only advocate giving referrals to the sales rep if, and only if, they have earned it.

· Pay Your Bills- This is very obvious. Vendors love it when customers pay their bills on time, and this is a sure way to stay in a positive light. Customers who are paying their bills within terms are not only rare these days, but LOVED by the vendors. Customers who pay late, or not at all tend not to get the "favors" that they might need one day.

· Honesty- I realize this may sound a little insulting at first glance, but I think one of the biggest things that can be established between a vendor-client relationships is honesty. For the sales rep, if you can be straight forward with the client, without having a hidden agenda, I believe this action will be rewarded after the relationship has developed and matured. For the customer, if you think the Carrier can be doing much better let them know, but more specifically be detailed in your criticism. Any good Sales Representative will be happy to receive positive performance based criticism.

· Don't Always Ask For Favors- Customers tend to wear out their favors from their Carriers before the relationship really begins. Customers, keep those favors in your back pockets until you really need them. Carriers do make mental notes of these favors, believe me, and when you most need it they will stop. I've seen this to many times in my career, and usually this ends in a bad break up.

· Integrity- Just like for honesty, a customer should demand this from his salesperson, but in return they should also reciprocate this as well. This characteristic is just a good life lesson, whether we are talking business, family, friends; it just makes good plain sense, to be a stand-up person.

· Consistent Behavior- I know that business and life can be rough, and everybody has their tipping points, but I've seen so many times wherein a customer will lash out at their salesperson because of them(customer) having a bad day. It's very important to avoid bad language, and to not take out your day on your representative. Find other ways to vent out your frustrations such as, the gym, yoga, reading, but remain a bigger person and a true professional, and don't succumb to life's pressures, especially towards your Sales Representative.

www.made-from-india.com offers solutions that help companies to improve bottom-line operational efficiency and meet new performance objectives. The exclusive database covers information about Logistic & Transport services in India, Logistic & Transportation Products in India, exporters of Logistic & Transportation Accessories, Logistic & Transportation products importer, Logistic & Transportation supplier, Logistic & Transportation manufacturers, & Wholesalers, logistics services in India, and customized global transportation.

Tuesday, August 17, 2010

Transportation & Logistics - 10 Things Shippers Want to Look For When Selecting a Freight Carrier



The current economy has provided the Transportation Industry with an influx of new companies that are looking to try to break into Shipping Freight. These companies are smart, because they are not looking to compete with the Big Boys, like the Fedex, UPS, and Conway's of the world, but they are looking to fulfill a niche market.

They hire a cousin to be the driver, and a friend to work the books. They acquire all necessary licenses and pay the fees that need to be paid and their in business. From this point on many of them proceed to the market place to offer, not value, but cheap rates, thus dropping the Industry market value down considerably. So with this in mind, a typical shipper probably has, at the least, 15 knocks on their door from potential new shipping vendors who say they want an opportunity to bid on their Freight.

Most customers at this point take the rate sheet, or at the least, take the sales reps card to perhaps give them a quote opportunity. The issue that faces a warehouse Manager is that every sales rep that enters the door is talking about 1 thing, and one thing only- cheap rates. It's not a wonder why Warehouse Manager's are at their wits end with Sales Calls. This article consists of some general guidelines that a shipper should consider when looking to hire a freight carrier. This list is compiled from consulting with many clients in the industry, as well as several Operation Managers.

10 Areas That a Shipper Wants To Examine Prior To Hiring a Freight Company:

1) Service Commitment- Make sure to ask questions directly concerning the destinations that you ship. Often times carriers will list transit times and destinations that they might not serve directly, but may have agents working for them their. Don't get me wrong, there's nothing wrong with an Agent relationship, but this is something that you want to make sure you ask the carrier.

2) Accountability- If a carrier promises you something make sure you hold them to it...Freight is not an exact science, so many things can come into play with regards to shipping- weather, load factor, mechanical issues, the list goes on and on... Make sure carriers take ownership of their promises and guarantees.

3) Price- I list this 3rd on the list because, believe it or not, price is not as big as people want to play it out to be. You see, if your product doesn't make it's destination safely and in good transit time, it won't matter if you received a dirt cheap rate because you will have a very unhappy customer. At times customers can live with a long transit time, but those times are, few and far between, in today's market.

4) Follow Up- If the Carrier doesn't get back to you in a timely fashion, or forgets altogether, then you definitely want to reevaluate your choice of vendors. Whether it be your sales rep, or your customer service agent, poor follow up runs through the company typically.

5) Operations- Grumpy operations personnel make for poor service all around. If you ever feel as if "you are bothering your operations representatives" then you definitely need a new company. In freight you might be dealing with employees who have been in the business for over 30 years, and really don't like their jobs- they often take it out on the customer. Don't fall into this trap!

6) Technology- We are in Y2K!!! If a company is not able to provide you with online capabilities and up to date information on your shipments then this might be a sign to look for another company. Please understand, there are many shippers that prefer to have a live person than use online technology, and that's fine, but the Freight carrier needs to be able to back that up with online technology for quick reports and a more efficient Distribution system.

7) Customer Service- We've all had those bad service experiences going out to dinner with our spouse, a rude customer service operator, so I'm sure you can relate to this topic. Never settle for rudeness because of cheap rates, you'll end up regretting it in the long run-guaranteed.

8) Ease of Engagement- This speaks for itself, because it should always be easy to get a hold of your Sales Person or the Operations Team. Companies that are good in this category do things like, answer the phone within 3 rings; follow up with emails/phone calls the same day; take a proactive approach to service rather than reactive.

9) Recoverability- I coined this term a few years back. When something bad happens, the good companies get right on it and maintain solid communications with the Shipper and all necessary parties. We all know that things happen, but it's how Carriers respond and recover that make them GREAT.Often times mishaps are what help solidify a Customer-Carrier relationship- ironic.

10) Gut- More important than all of the other topics combined is to make sure you use your gut instinct. If you don't feel right about the carrier, or if you can't seem to find anything good about them other than price then you might need to take a mental note and look deep at their company because the GUT is usually right on the money.

www.made-from-india.com offers solutions that help companies to improve bottom-line operational efficiency and meet new performance objectives. The exclusive database covers information about Logistic & Transport services in India, Logistic & Transportation Products in India, exporters of Logistic & Transportation Accessories, Logistic & Transportation products importer, Logistic & Transportation supplier, Logistic & Transportation manufacturers, & Wholesalers, logistics services in India, and customized global transportation.

Wednesday, July 7, 2010

Celebrity Private Jets - A Flight Of Fantasy And More





It used to be so high class, so glamorous to be able to fly first class. However, flying first class is no longer as big deal as it used to be in recent years. In fact, it does not imply as much prestige. This is due to the fact that the first class passengers still have to walk through the metal detector and are still subjected to checks by immigration much like everyone else. Sometimes, you may even need to leave behind your expensive accessories like earrings or cuff links just because they may pose a security threat. This can be quite frustrating. However, when you own a celebrity private jet, you are one of the very few lucky ones.

Celebrity Star Treatment

When you can afford a celebrity private jet, you can expect pampering and luxury every step of the way. Right from the point you leave your house to the airport, the celebrity treatment has already started. You get the star treatment of being ferried to and fro the airport in your very own limousine. In fact, every tiny little bit of detail will be planned and arranged for you by your own concierge. For example, you can even request for special gourmet food to be served to you, perhaps low fat, no carbs or even high protein. The concierge will arrange every detail of your vacation from logistic, transportation, accommodation, trip itinerary and more and all to your whim. What you need to do is probably to approve the arrangement with a "yes", sit back and enjoy your entire trip. This are the perks that the ordinary folks will never experience even if they travel first class.

Safety First

Another big selling point of taking private celebrity jets is the safety factor. With terrorists getting more and more bold, it is no wonder that air travel is no longer safe. Who knows when and who will launch a terrorist attack? However if you are traveling by celebrity private jet, such a risk is greatly minimised as everyone on board is someone you know. Furthermore your jet is also in top working order with qualified, competent and experienced pilots at its helm.

Upkeep Made Simple

You might think that it is probably very tough to own and to maintain a jet. This is a common misconception as the upkeep of your celebrity private jet is pretty easy and straightforward. How? The best way to go about it, is to assign someone or a professional company to help you take care of the maintenance. This frees you of the hassle of having to personally take care of the jet. The best part is your jet is still well taken care of without any worries.

Celebrity private jet is without a doubt the coolest way to travel. It is the ultimate pampering in the sky and the most stress free way to fly. So thinking of a vacation that you will never forget? This is it!

www.made-from-india.com offers solutions that help companies to improve bottom-line operational efficiency and meet new performance objectives. The exclusive database covers information about Logistic & Transport services in India, Logistic & Transportation Products in India, exporters of Logistic & Transportation Accessories, Logistic & Transportation products importer, Logistic & Transportation supplier, Logistic & Transportation manufacturers, & Wholesalers, logistics services in India, and customized global transportation.

Tuesday, June 8, 2010

Transportation & Logistics - Understanding When to Use Dimensional Weight Vs The Class System




The concept of Domestic Heavyweight shipping is far from being a "no brainer" in today's Supply Chain. A customer really needs to be on their P's and Q's to maximize their business when shipping via the ground. Other than price there are several key factors that must be considered to get the most out of your carriers- transit time, region expertise, to name a couple. Something that I had a particularly difficult time getting used to when I started working in the Freight industry was the concept of Dimensional Weight vs. the Class system for Motor Carriers.

Freight Forwarders use dimensional weight vs. actual weight; Motor carriers use the Classification systems to determine liability, costs of shipment, susceptibility to damage, and value. In laymen terms, the class system rewards a shipper whose shipment is dense with "0" or little value. So a customer shipping 500 pounds of screws would get more benefits of a good rate than a customer shipping 500 lbs. of feathers.

A few years back, the thought process was when shipping LTL type shipments to always use a Motor Carrier such as Conway or UPS Freight because you are going to get better rates and service. But times have changed in that Freight Forwarders have become more competitive in certain situations, and more often than not they will offer a faster transit time. Forwarders use dimensional weight to help them assess the weight of shipments. If your shipment is destined to travel on the ground with a Forwarder they will be using a DIM FACTOR of 250; shipments traveling in the air within the United States would be using a DIM FACTOR of 194; and international would be D.F. 166.

Let's take an example to show how dimensional weight is assessed vs. actual weight on a ground shipment:

Customer is shipping a pallet of computers headed to Denver, Colorado. The pallet dims are 48x50x50 with a weight of 300 pounds. After multiplying the pallet dimensions together and dividing by 250 your dimensional weight would be 480 lbs. So the carrier would use 480 lbs. to determine the rate. On the contrary, let's take the same product with the dims of 30x30x30 with a weight of 300 lbs... Using the same DIM FACTOR of 250 you now get the dimensional weight of 108 lbs. so in this case you would take the actual weight of 300 lbs.

What I have used as a general rule to understand the best time to use a Freight Forwarder vs. a Motor Carrier to ship out freight are:

  • 1) When time is of the essence
  • 2) If you are shipping via a motor carrier and your Class is at a 92.5 or above there's a good chance the F.F. will be more cost effective.
  • 3) If a shipment is high importance and damage is NOT an option- less handling.
  • 4) If there other variables such as "blind shipments" and "COD's" involved.
  • 5) If you have been experiencing theft or vandalism.
In conclusion, there are many benefits in using both a Freight Forwarder and a LTL carrier but the real key is for you as the shipper to fully understand the capabilities that they offer. Be smart, research and understand the benefits of your carrier and you can take full advantage of each of their resources.

www.made-from-india.com offers solutions that help companies to improve bottom-line operational efficiency and meet new performance objectives. The exclusive database covers information about Logistic & Transport services in India, Logistic & Transportation Products in India, exporters of Logistic & Transportation Accessories, Logistic & Transportation products importer, Logistic & Transportation supplier, Logistic & Transportation manufacturers, & Wholesalers, logistics services in India, and customized global transportation.

EJ White is a 15 year veteran in the area of Supply Chain and Logistics. EJ has worked for companies such as Fedex Services, Yellow Transportation and Aeronet Worldwide. His area of expertise is Supply Chain solutions and he believes in taking a consultative approach to working with his clients. EJ is currently serving as Vice President of Sales and Service with a fast growing Freight Forwarder based out of San Francisco, Ca. EASCO has proven to be a company who offers their clients solutions to maximize their efficiency and achieve the utmost cost reduction possible.

Thursday, May 27, 2010

Reducing Costs in Freight Transportation and Logistics While Improving Customer Service Quality




The process of managing stock, warehouse inventory, and freight transportation is at the heart of logistics. Logistics is the management and coordination of moving inventory from it's origination to its ultimate destination. The goal of a logistics team is to find a way to do this process in the most streamlined, cost efficient method possible.

When a product is ready for use, the clock starts to count down how long it will take to complete the cycle from completing the manufacturing of a product to the consumption of that product. The longer it takes to get the item into the hands of the consumer, the more money a company loses. So how does one streamline this process? By implementing a logistics plan of action, a company can do just that. Larger manufacturers will hire a logistics team that is responsible for the routing of goods from the company, to the freight transportation company, and finally to the end client. They will have a database system to track all inventory. They will monitor inventory levels to make sure that a backlog of supply occurs. The cost associated with storing inventory in a warehouse is often much greater than the expense of shipping products. For this reason, it is very important to carefully control how much stock is stored.

Another responsibility of logistics is to find the most cost-effective means of transportation. Obtaining freight rate quotes and striving to keep these rates as low as possible is a key factor to a successful logistics operation. When the trucking industry was deregulated, it sparked a new wave of competition and lower costs. This combined with improved technology to track and communicate shipments; freight transportation management became a little easier. Being able to follow and trace the cargo more efficiently has reduced the communication errors from supply chain to the wholesalers and retailers.

An additional responsibility of transportation and logistic specialist is to account for accurate transportation times. It is vital for companies to be able to rely and trust that their shipments will arrive in a timely manner. Being well organized accounts for much of this success, but the ability to transport the shipments quickly is also important. Because the country's infrastructure has improved with better maintained highways and interstates, transportation times have decreased. Freight transportation is more reliable now because companies can more accurately predict when a shipment will arrive. Some trucking companies will even guarantee the precise day and hour that a delivery will be made. This is very important because customer satisfaction is often based around on-time deliveries and accurate accounting of merchandise. This has also helped to reduce the cost of shipping freight, since trucking companies now have reliable, more direct routes to utilize. It indirectly affects cost because better roads create less wear and tear on shipping vehicles.

www.made-from-india.com offers solutions that help companies to improve bottom-line operational efficiency and meet new performance objectives. The exclusive database covers information about Logistic & Transport services in India, Logistic & Transportation Products in India, exporters of Logistic & Transportation Accessories, Logistic & Transportation products importer, Logistic & Transportation supplier, Logistic & Transportation manufacturers, & Wholesalers, logistics services in India, and customized global transportation.

If a logistic team only concentrates on reducing freight cost, they could potentially lower customer service quality. Therefore, the goal of a logistics manager, or third party administrator, is to find a balance between cost and customer satisfaction. They must also be able to provide accurate tracking information, correctly estimate shipping cost, and be able to calculate delivery dates and times. By being organized, keeping cost low for the clients, and by making on time deliveries, freight management can help control the overall customer satisfaction of their clients.